At this time, Council will recognize the following
employees who retired during 2007:

John Carleton

Joseph Crum

Marko Galbreath

William Groom

William Monning

John Rising

Margaret Sneddon

Glen Walker

City Manager’s Comments: When you review the list of
individuals who retired in 2007, you see employees who have dedicated their
careers to the citizens of Port Orange.I have been fortunate to get to know each of them both as employees but
most importantly as individuals.Our
citizens have been served well by each of them.Tuesday night will provide the City Council with an opportunity
to express to each of them our thanks and appreciation for their service to
Port Orange.

City
Manager’s Comments:Annually, the City has to organize the various
agencies and corporate entities of the City of Port Orange.The groups will meet on Tuesday evening to
organize, elect officers and to perform other functions necessary for the
agencies and corporations to conduct business.

For the past few years, the City’s investment
portfolio has been managed by Public Financial Management, Inc. (PFM).At the conclusion of each year, PFM presents
an annual investment performance review to the City Council.PFM outlines investment earnings for the
year, comparable indexes, and an overall performance evaluation.PFM will be present at the Council Meeting
to present their report.

City Manager’s Comments:I want to express my appreciation to PFM for the
analytical work they did on our behalf when looking into the State of Florida
Local Government Investment Pool.They
helped the City examine the underlying securities to determine whether the City
was being served by remaining in the pool.PFM, along with Toby Wagner, provided the Investment Committee with
information that guided us to withdraw from the Pool before its problems became
front page news.

Diamond Quest presently has an annual service
agreement in place with the City for maintenance of utility plant security
system components.Under this purchase,
Diamond Quest will install a system at the Cypress Head drinking water pump
station.The system will be comparable
to systems already installed at our other remote sites.In addition, the existing security systems
at both the Garnsey Water Treatment Plant and the Huffman Reclaimed Water
Treatment Plant, plus the security systems at the two remote drinking water
pump stations at Oceans and Peninsula, will all be upgraded.Additionally, the system will feature
redundant monitoring capabilities from both main plants.

Diamond Quest has provided a quote in the
amount of $35,896.This project was
identified in the CIP and funds are currently available Water Plant
Improvements, Project No. WWP 003, Account No. 40302005336397.

Staff recommends that Council approve Diamond
Quest as the sole source vendor of the City’s utility security system and
approve a purchase order to Diamond Quest for the supply and installation of
security system components, in the amount of $35,896.00.

On October 24, 2006, the City awarded the
construction contract for the public improvements associated with the Eastport
Business Park, Unit II industrial subdivision to Masci Corporation of Harbor
Oaks, FL.The original contract amount
was $1,726,850.Gopher tortoises were
found within the project limits shortly after construction commenced.Change Order No.1, approved in January 2007,
added $27,000 to the contract to provide for additional expenses associated
with the turtle mitigation and relocation.This 2nd Change Order reflects significant project savings
arising from the mid-construction redesign of the pedestrian sidewalk from the
west to the east side of Eastport Parkway, thus eliminating expensive wooden
walkways and bridges adjacent to sensitive wetland areas.The
Net Decrease of this Change Order is $169,411.06.

Funding for this construction project was previously
approved by City Ordinance No. 2006-38, which authorized the issuance of Tax
Increment Financing bonds.The
construction account number for Eastport Business Park, Unit II is
#102.1000.580.63-97, and the project number is PNC004.

Staff recommends that Council approve Change Order
No. 2 to the contract with Masci Corporation for the construction of Eastport
Business Park, Unit II, reflecting a net decrease of $169,411.06, resulting in
a final construction contact price of $1,584,438.94.

In September, 2006, the City Council approved Addendum No. 65 to the
Agreement with Quentin L. Hampton, Associates, Inc., dated February 14, 1980,
for contract administration and engineering inspection services related to the
bidding and construction of Eastport Business Park, Unit II. The total estimated fee
for these services, which was approved before the project was actually bid, was
$123,678. The requested augmentation would bring QLH’s total fee to
$160,201.78.As detailed in the
accompanying letter, additional costs were incurred during the course of the
project for which remuneration is now being sought.Offsetting these additional expenses, QLH’s “value engineering”
of the project design during construction resulted in a $142,366 savings in
actual construction costs.

Bonds backed by Tax Increment Financing revenues
were issued to fund construction of the public facilities for Eastport Business
Park, Unit II.Sufficient funds remain
in this account to cover these additional expenses.The construction account number for this project is #102.1000.580.63-97.Staff
recommends approval.

Staff recommends that Council approve a $36,523.78
increase to Addendum No. 65 to the Quentin L. Hampton & Associates Contract
for contract administration and engineering inspection work associated with the
construction of Eastport Business Park, Unit II.

City Manager Comments:Quentin Hampton and Associates was not the design engineer for this
project.They handled the contract
administration for this project.One of
the things they ran into was the gopher tortoise issue.They worked with the City staff and the
design engineer to handle the issue in a timely manner.They worked with the contractor, the design
engineer, city staff to perform value engineering services for the
project.

Let me encourage you to speak with Donna about each
Eastport Change Order.She can provide
you with specific details what is entailed in each change order.

In September, 2003, the Eastport Business Center CRA
approved a Scope of Services with Parker Mynchenberg & Associates to design
and bid Eastport
Business Park, Unit II.As the Engineer of Record for
the project, Parker Mynchenberg was approved for an original Scope of Work
estimated at $38,955.This amount was
funded with a Promissory Note obtained from the City.Once sufficient funds were available to proceed to the
construction phase, additional engineering and permitting services were
requested to move the construction along as quickly as possible.Additional services were also requested in
the context of the value engineering that took place mid-way through the
project, resulting in a construction cost savings of $142,366.As detailed in the accompanying letter from
Steve Buswell, P.E., for Parker Mynchenberg, $21,637.56 in additional costs
were incurred.That amount, plus a
remaining balance of $6,409.97 from the original scope, equals the final
payment request of $28,047.56.With a
remaining balance of only $809.97 on the initial purchase order, staff is requesting approval of an increase of
$27,237.56.

Bonds backed by Tax Increment Financing revenues
were issued to fund construction of the public facilities for Eastport Business
Park, Unit II and pay off the initial Promissory Note.Sufficient bond funds remain to cover these
additional expenses.The construction
account number for this project is #102.1000.580.63-97.

Staff recommends that Council approve a $27,237.56
increase to the contract with Parker Mynchenberg & Associates, Inc. for
Engineering work associated with the construction of Eastport Business Park,
Unit II.

City
Manager’s Comments:Let me encourage you to speak with Donna about
the scope of service change that occurred that resulted in a portion of the
fees.She can provide you with
specifics of this project.

The City’s current contract with Shelley’s Environmental
for transportation and disposal of bio-solids produced at the Reclaimed Water
Plant expires this year.Due to
increases in production and fuel costs, Shelley’s was once again not willing to
extend the contract at the current unit price; however, Shelley’s has agreed in
writing to extend the current contract for two months at the existing unit
prices.This will give the City time to
evaluate the proposal and re-bid for this service, if necessary.Funds are available in the current operating
budget, Account No. 40104005353411.

Staff recommends that Council approve a two month
extension for bio-solids removal, transportation, and disposal to Shelley’s
Environmental Systems at the current unit pricing and authorize the Mayor and
City Manager to sign contract documents on behalf of the City.

Request for Qualifications were solicited for contractors
for the Public Safety Facility.Seven
submittals were received.Of those
seven firms, four were deemed by the committee to be of the quality that the
City would like from the contractor that gets awarded the construction of the
Public Safety Facility.The four firms
that were short listed by the committee are:

Clancy & Theys

Wharton-Smith

Hall Construction

R. D. Michaels

A copy of the short-list tabulation is attached for your
review.Staff recommends that the City
Council approve this final ranking of contractors that will be bidding the
Public Safety Facility.

City Manager’s
Comments:The next 3 items (16, 17, and 18) are
assistance being provided to new homeowners under the State Housing Initiative
Partnership Program.This program
assists qualified home buyers in purchasing their homes.The funding source is grant funds from the
State of Florida.Their source of
revenue is from document stamps.Before
names are submitted to the City for approval, they go through screening and
education programs.Our contractor, Mid
Florida Housing Partnership, does the applicant screening.Each applicant has to attend credit
counseling and home ownership classes.Using SHIP funds, we are able to provide assistance to 3 new homeowners
enabling them to live in Port Orange.

The State Housing Initiatives Partnership program is a grant that is
funded by the State in an effort to assist low and moderate-income individuals
with housing needs.Josh Eddy has been
approved for assistance through the City’s contractor Mid-Florida Housing
Partnership. In addition to approval, Josh has attended classes on credit
counseling and home ownership, as well as met all State regulations for
assistance.All contracts and closing
statements will be subject to approval by the City of Port Orange Legal
Department prior to award of assistance and property closing.

Staff recommends that Council authorize the loan up
to $60,000 and acceptance of second mortgage and promissory note for the
purchase of real property.

The State Housing Initiatives Partnership program is a grant that is
funded by the State in an effort to assist low and moderate-income individuals
with housing needs.Frederic C.
Urquhart III has been approved for assistance through the City’s contractor
Mid-Florida Housing Partnership. In addition to approval, Frederic has attended
classes on credit counseling and home ownership, as well as met all State
regulations for assistance.All
contracts and closing statements will be subject to approval by the City of
Port Orange Legal Department prior to award of assistance and property closing.

Staff recommends that Council authorize the loan up
to $60,000 and acceptance of second mortgage and promissory note for the
purchase of real property.

The State Housing Initiatives Partnership program is a grant that is
funded by the State in an effort to assist low and moderate-income individuals
with housing needs.Lisa Wilson has
been approved for assistance through the City’s contractor Mid-Florida Housing
Partnership. In addition to approval, Lisa has attended classes on credit
counseling and home ownership, as well as met all State regulations for
assistance.All contracts and closing
statements will be subject to approval by the City of Port Orange Legal
Department prior to award of assistance and property closing.

Staff recommends that Council authorize thee loan up
to $60,000 and acceptance of second mortgage and promissory note for the
purchase of real property.

The City is reducing the principal loan amount by
$111,318.58.This is a change to the
original ordinance adopted by the City Council on October 26, 2004.This reduction was because the project
actually came in lower than the loan amount that had been authorized under the
SRF Loan Agreement.

In June 2006, the City of Port Orange received a 4.812
acre parcel of land located directly behind Lowe’s.This property is located in the Gateway Center.After careful analysis, staff is
recommending that the property be declared surplus and offered for sale.Donna Steinebach has been assigned the task
of selling this property.She is working
with the City Attorney to obtain all of the necessary releases and approval so
that a potential purchaser can move forward with a project on this site.

This
modification deducts $1,826,719 from our acquisition program.This reduction was caused by homes being
removed because they were included in our Repetitive Flood grants or the
homeowner decided not to sell.Staff
recommends approval.

C. T. Hsu has provided a proposal for additional services
for drawings, specifications, pre-bid, and bid items, as well as engineering
work for voice, data, telecom, and other systems as noted in their
proposal.Proposed cost increases are
as follows:

Police Station:Increase
of $72,341, bringing contract total to $905,841

Fire Station 72:Increase
of $4,857, bringing contract total to $233,750

Fire Station 75:Increase
of $9,249.61, bringing contract total to $237,750

Funding for this is coming out of 314-1000-580-6200,
Project CNE006, CN#004, and CNE005.

Staff recommends that Council approve the amendment to the
contract with C. T. Hsu & Associates to provide additional services and
work for the new Police Station and Fire Stations 72 and 75 in the total amount
of $86,447.61.

City Manager’s
Comments:This item was
originally presented to the City Council on October 23.There are two aspects of this request for
additional funds.The first is a
request for funding necessary to design the security system in the Port Orange
Police Department.In reviewing the
RFP, there was an oversight on our part.We found that we did not include the design for the security system in the
scope of services in our RFP.In order
for the Police Department to operate correctly, the security systems must be
designed.I have told C.T. Hsu to not
stop the design of the Police Department while we work out the details related
to the change order to their contract.The second item relates to the change order request for additional
services.The Civil Engineer has
incurred additional time related to breaking the site work apart from the
building contract.It relates to
attending pre-bid conferences, inspection services, preparation of
specifications and bid documents, bid meetings, etc.Although I do not like to recommend to the City Council change
orders for professional design services, it is my opinion that C.T. Hsu and the
design professionals employed by them are entitled to the change order due to
our oversight by not including the security system design in the RFP and a
decision the City made to bid out the site work as independent components away
from the building component.The decision
to bid the components separately has saved the City money.In fact, enough money has been saved to
cover the cost of the change order.Therefore, I am recommending approval.